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Stratech posts net loss of S$3.73m for H1, dragged by much lower revenue
TECHNOLOGY company The Stratech Group on Friday posted a net loss of S$3.73 million in the first half of fiscal year 2016, a reversal from the S$125,000 net profit a year ago.
Loss per share stood at 0.24 Singapore cent a share, down from the earnings per share of 0.01 cent in FY2015.
The net loss follows a sharp fall in revenue for the first half ended Sept 30, by 77.2 per cent to S$2.09 million.
The decrease in revenue was mainly attributed to lower level of project activities, in line with the project milestones of the ongoing projects.
"As a substantial portion of the group's business is project-based, revenue tends to be lumpy and dependent on the project milestones whereas the operation division costs remain relatively constant, as a result, lower gross margin was achieved in H1-2016," the company said.
In an update, the group said it was awarded the contracts announced in July this year to install and maintain iFerret™ at Miami International Airport and in October, for the upgrade of iFerret™ for the second runway at Singapore Changi Airport (plus options for the installation of iFerretTM at the airport's upcoming third runway, maintenance and other works).
But Stratech noted that these contracts have not contributed to H1 FY2016 and are expected to contribute to the group's activities from the next half of fiscal year and beyond.
It added that it has submitted proposals for tenders for several major international airports and is in the midst of preparing proposals for several other tenders in different countries.
"In view of the nature of its business, the group may continue to experience delays in the issue of tenders and award of contracts, and there is inherent uncertainty of success due to competition," it said.